UPDATE 1-Canada debt-to-income edges down in first quarter

OTTAWA, June 14 (Reuters) - Canadian household debt as a
percentage of income edged lower in the first quarter but
remained high as consumers continued to borrow, data from
Statistics Canada showed on Tuesday.

Households held C$1.65 in debt for every Canadian dollar of
disposable income. The ratio of household credit market debt to
income of 165.3 percent was down from the fourth quarter's
record of 165.4 percent.

The ratio edged down as disposable income and debt increased
at nearly the same rate over the quarter.

But borrowing increased by a seasonally adjusted C$24.4
billion ($18.99 billion). Mortgage borrowing made up C$17.5
billion of that, down from C$20.7 billion in the fourth quarter.

Canada's strong housing market has raised concerns that
consumers, drawn by low interest rates, are taking on too much
debt. The Bank of Canada said last week that households'
vulnerabilities to an economic shock had increased, in part
because of elevated indebtedness.

In the last quarter, though, it remained relatively easy for
Canadians to carry their debt, with the interest-only service
ratio around its record lows at 6.6 percent.